Aboriginal legal services around the country have welcomed the reinstatement of more than $16 million in federal funding.

The community legal sector had been facing a 30 per cent federal funding cut from July 1 until a backflip from government saw $55.7 million restored to the sector over three years.

CEO of the National Aboriginal and Torres Strait Islander Legal Service, Wayne Muir, told the ABC there needs to be more stable funding agreements for legal services in the future.